The Business Bytes
New Delhi, December 4, 2024 (TBB Bureau): In a significant push toward enhancing India’s energy security and economic development, the Ministry of Coal is set to launch the 11th round of Commercial Coal Mine Auctions on Thursday, December 5. A total of 27 coal blocks, located across various states, will be offered for bidding, aiming to stimulate regional economic growth and create employment opportunities, according to an official statement released on Wednesday.
Union Minister of Coal and Mines G. Kishan Reddy will inaugurate the auctions in New Delhi, alongside Minister of State for Coal and Mines Satish Chandra Dubey and Coal Secretary Vikram Dev Dutt.
This round of auctions includes 20 coal mines, evenly divided between fully explored and partially explored blocks. Additionally, seven coal mines from the second attempt of Round 10 will also be on offer, comprising four fully explored and three partially explored blocks. All the mines feature non-coking coal, vital for meeting the nation’s rising energy demands.
The auctions mark a continuation of the Ministry’s reform-oriented approach to unlock India’s vast coal reserves. Notably, the Ministry will sign Development and Production Agreements for nine coal mines during the event. These mines are expected to contribute approximately ₹1,446 crore in annual revenue at peak-rated capacity and generate nearly 19,063 jobs, reflecting the initiative’s significant socio-economic impact.
Highlighting transformative reforms, the Ministry has eliminated restrictions on coal usage and removed technical and financial eligibility barriers for participation. The move to the National Coal Index from a notified price model further ensures transparency and fairness, aligning the sector with global standards.
The auctions will be conducted through a transparent online platform using the Percentage Revenue Share model. Detailed information about the mines, auction process, and timelines is available on the MSTC auction platform.
The government has also bolstered operational efficiency through the Single Window Clearance System (SWCS) portal. This initiative streamlines the approval process, fostering ease of doing business and expediting coal mine development.
The launch is a testament to the government’s commitment to creating a robust coal ecosystem that supports India’s energy needs, empowers private players, and contributes to sustainable economic growth.
